Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion turned negative this quarter, reflecting operating cash outflows. The free cash flow margin weakened sharply from the prior quarter but improved compared to the same quarter one year earlier.
- Revenue was slightly lower than the preceding quarter. Operating cash flow was negative, resulting in negative free cash flow and margin, although the margin improved relative to the prior-year period.
- Compared to the immediately prior quarter, operating cash flow and free cash flow both weakened, turning from positive to negative. Versus the same quarter a year earlier, both metrics improved as the prior-year period had a larger operating cash outflow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$74.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$62.0M
Cash generated by operations before capital spending.
CapEx
$12.0M
Capital spending and related asset purchases.
FCF margin
-16.0%
The share of revenue converted into free cash flow.
TTM FCF yield
8.5%
TTM FCF divided by market capitalization.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2025-06-30 | $425.0M | $1.2B | $23.0M | $1.2B | 284.9% |
| 2025-09-30 | $433.0M | $396.0M | $29.0M | $367.0M | 84.8% |
| 2025-12-31 | $477.0M | $718.0M | $45.0M | $673.0M | 141.1% |
| 2026-03-31 | $462.0M | -$62.0M | $12.0M | -$74.0M | -16.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -14.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Shift
Operating cash flow moved from a large positive in the prior quarter to a negative amount this quarter, directly causing free cash flow to turn negative.
The reversal in operating cash flow significantly reduced cash available, making free cash flow negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the preceding quarter. Operating cash flow was negative, resulting in negative free cash flow and margin, although the margin improved relative to the prior-year period.
Compared to the immediately prior quarter, operating cash flow and free cash flow both weakened, turning from positive to negative. Versus the same quarter a year earlier, both metrics improved as the prior-year period had a larger operating cash outflow.
The direction of operating cash flow, given its significant swing from positive to negative, is a key metric to monitor.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $25.5B | Used as the denominator for FCF yield. |
| TTM FCF yield | 8.5% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.